Former Vice President Alhaji Atiku Abubakar has frowned at the federal government over the $3.3 billion emergency crude repayment loan, saying government owes Nigerians an explanation.
Atiku, a candidate of the People’s Democratic Party (PDP) in the 2023 presidential election, vented his spleen through a press release made available to Blueprint in Abuja on Thursday.
The federal government had last year, August 16, 2023, reportedly secured the loan through the Nigeria National Petroleum Company Limited (NNPCL).
Although the corporation had earlier cleared the air, explaining that the move was to help give support to the Naira and stabilise the foreign exchange market, Atiku faulted government’s stance further, lamenting that the federal government has continued to keep mum about the transaction, insisting that the only information available to the public on the mega deal came through unofficial sources.
Among other questions, Atiku asked the federal government how the loan was accessed; whether or not the government’s borrowing plan was approved by the National Assembly; parties to the loan, conditions attached; what specific roles are they expected to play, and why SPV was registered in Bahamas?
“The deal is supposed to be a crude-for-cash loan arranged by the African Export-Import Bank.
“According to information available, a Special Purpose Vehicle called Project Gazelle Funding Limited is driving the deal, and it was incorporated in the Bahamas.
” The SPV is the borrower while the NNPC is the sponsor, with an agreement to pay with crude oil to the SPV in order to liquidate the loan at an interest rate that is a little over 12 per cent.
“Curiously also, Nigeria’s current Barrels Produced Daily (BPD) is 1.38 million, and according to the Project Gazelle deal, Nigeria is to supply 90,000 Barrels of its daily production, starting from 2024 till it is up to 164.25 million barrels for the repayment of the loan.
“Now, this is where the details get disturbing because Nigeria’s benchmark for the sale of crude per barrel in 2024 is $77.96. A simple multiplication of that figure by 164.25 will give us a whopping $12bn,” he said.
